Purchase Management Mar 11, 2026

Purchase Management

Overview

The purchase module manages supplier invoices, goods received, purchase orders, and supplier payments.

Why this matters: Every purchase affects your inventory value, supplier balances, and cost of goods sold. Proper purchase management ensures accurate COGS calculation (critical for knowing your true profit), prevents double-payments to suppliers, and maintains a clear audit trail of where your money goes.
Screenshot: Purchase invoice list with filters

Creating a Purchase Invoice

Screenshot: Create purchase invoice form
1

Go to Purchase Management → Purchase Invoices

2

Select Supplier from the dropdown or create a new one

3

Add products with quantity, unit price, and tax rate

4

Choose payment method: Cash, Credit (on account), or Partial Payment

5

Submit. Stock updates immediately and accounting entries are created.

Accounting Impact

AccountDebitCredit
Inventory (1131)Product cost
VAT Input (16)Tax amount
Accounts Payable / CashTotal amount

Purchase Sub-Modules

  • Purchase Orders — Create orders to send to suppliers
  • Goods Received — Confirm receipt of goods
  • Purchase Invoices — Record supplier invoices
  • Supplier Payments — Record payments made to suppliers

Opening Inventory

Screenshot: Opening inventory setup

Record your starting inventory when first setting up the system. Navigate to Purchase Management → Opening Inventory.

Practical Example: You receive 100 units of "Notebook A5" from supplier "Paper World" at 5,000 SYP each, with 15% VAT. Total = 575,000 SYP. You pay 300,000 SYP cash now, rest on credit. The system: (1) adds 100 units to stock, (2) creates entries — Dr Inventory 500,000 + Dr VAT Input 75,000 / Cr Cash 300,000 + Cr Accounts Payable 275,000. Supplier balance shows 275,000 SYP owed. Your COGS for this product is now accurately set at 5,000 SYP/unit.